tv Bulls and Bears FOX Business May 10, 2015 2:00am-2:31am EDT
do you have a "strange inheritance" story you would like to share with us? we'll love to hear it, send me an e-mail or go to our webprom. >> what? >> he's too young. if you thought these protesters demanding $15 an hour are pushing it and democratic lawmakers trying to mandate $12 an hour are overdoing it now one california city topping it. raising its minimum wage to $16 by 2019. will this wave for government mandated wage hikes have jobs taking a hike? hi everyone. i'm brenda buttner. this is "bulls and bears." here they are. jonas ferris john layfield welcome everyone. lisa as we're seeing jobs
coming back will this wage rage send the unemployment rates back up? >> it absolutely will. democrats are pushing this because it's a cheap political tactic to get low-income voters. that's what they're trying to do. when cash goes into one pocket it comes out of another. you're forcing businesses to increase costs, which will be passed to consumers, or lay off workers. >> that's totally inaccurate. corporations are hitting the highest profit margins every. they can pay their workers livable wages. nobody can support a family off $16 an hour. the cost of living is higher than ever. how do you get more profits? put money in the pockets of individuals who will spend money in the economy. that's how the economy is run. >> i'm not sure about some of that. most of the minimum wage workers don't support a family after
four. >> most of the minimum wage workers aren't at these large corporations. i don't know if ibm has any minimum wage workers, for example. but the point is this has been studied. the fact the congressional budget office came out and said, raise minimum wage going to lose 500,000 jobs. we envelopeven have better tests because states are able to raise the minimum wage above the federal level. it's been studyied by uc san diego. states that raise the minimum wage versus states that didn't cost the unemployment 6% to 8%. you can't just move the money around and magically create this great economy that people think it's out there for all, kumbaya. that's the way the market works whether you like it or not. >> somebody has to pay for higher wages. either we have to pay higher
prices or people lose their jobs or businesses go out of business. isn't that right? >> absolutely. look if raising the minimum wage would boost the economy so much raise it to $100 an hour. that argument doesn't hold water. it's irresponsible. it sounds good even looks better on a bumper sticker, when you say $15 minimum wage. but to say that a minimum wage worker is supporting a family of four look that is a pure faprycationfap ry -- fabrication. the family brings in $53,000 per year on average. that is a living wage. most are part-time, most are teenagers or people that are not the head of households. you cannot raise a federal minimum wage because what works in seattle doesn't necessarily work in alabama or mississippi. allow states to do this. what lisa said is 100% accurate. the democrats want this for 2016. they will not allow this to be fixed.
i promise you that. >> the democrats were doing this for 2016 they'd raise the minimum wage to $25 an hour. let's no way anybody, a family of four or one individual can support themselves off of $15,000 a year. >> the problem is -- >> they're not doing it. >> hold on. >> i want to let john respond. >> they're not doing it. that's fabrication. look they do want to raise it for the 2016 election. if they didn't they'd fix the minimum wage. there is bipartisanship to tie this. democrats don't want it but want to be reelected. >> but the -- >> let me finish. the unions don't want it as a recruiting tool. this is politics. >> i want to get back to the politics. jonas, do you agree any minimum wage above a marking clearing price, basically, will cause unemployment but that's not the end of the story. >> yeah. just from a purely economics
point of view, every town city has different economics and wages. if there were no wage laws maybe around san francisco, it would be high. in some parts of the country, it could be r5 could be $5. when you raise the rate, and not just minimum wage health insurance, retirement benefits there are a whole litany of things interfering with the market wage. you'll get higher unemployment. the question is is the tradeoff worth it? if it goes to $100 it'll be a point where there's hardly any fast food jobs. it'll be robots. do we get a psychological benefit with the artificially high unemployment. do people not turn on their employers if they feel there is a minimum wage and they're getting a little more? there's also another benefit. the cheap goods, the $1 menu at mcdonald's would go away.
but having artificially high paid workers serving food you may get better serving. there is losers and winners because it is artificial. >> lisa? >> well look what i want to do is point back to what was said. the democrats are playing fast and loose. 50% of the individuals who are having the minimum wage are between 16 and 24 years old. >> it's untrue. >> it's according to key research. the majority of the individuals are living in households that make above the national average. 2/3 of the individuals would receive a pay increase in a year. you're playing fast and loose with the facts. >> it's a false study. the teenager thing is not true. >> okay. >> we're catch checking research. >> we can discuss on one hand on the other hand.
as you pointed out, gary it's a non non-part non-partison group, saying we can lose hundreds of jobs. >> getting back to jonas' point, and then your point, brenda is that we still have unabashed faith in government like they're the wizard of oz. if they could somehow, there was super smart people back there that could pull a lever here and push a rod there, they could come up with a magical, perfect minimum wage that wouldn't raise unemployment. yet, it would make people happy out there. i mean it just is a fallacy. we've seen this with economists at the fed that try to common the economy. we've seen it with peopl treasury department. we've seen it all over. brenda objective economists say that study after study says when you raise the minimum wage past what i think jonas or john said the market clearing price,
you're going to have more unemployment. you can argue all the other benefits you want but that's the bottom line. >> companies are going to other states that don't have those minimum wage laws. that's why it's going up. they're leaving the states increasing the minimum wage. if it was a national thing, we wouldn't have the job loss. >> john? >> what about overseas? >> wait a minute. california is losing jobs because of taxes. has nothing -- these are good high quality jobs. you're entitled to your own opinion, not your own facts. the average family again, that has a minimum wage worker bring bringingbrings in $53,000. why choose $12 or $15 because it looks good on the back of a bumper sticker? is it going to hurt jobs? absolutely. we need to fix the minimum wage not make it a political football like it has been and is right now. >> jonas? >> i just think it will definitely raise unemployment in some markets more than others if it was federal. the way where cities are going
to the higher level, it's an experience. maybe seattle can handle the double digits. it could be in some cases the benefits are as good as the negatives. there are definitely negatives. you can't paint it like it's upside to everybody, more magic money to throw around. there's going to be some people not getting jobs because they're only employable at a certain wage. >> why is that the government's job, to make everybody happy out there? why do they -- where is that in the constitution that they're entrusted with that? >> i'm sorry -- >> the constitution france had a revolution because they didn't have this and turned on the rulers. look what happened. >> i have to give you the last word. thanks guys. with isis threats to our homeland mounting are our efforts to cut off its funds failing? why someone here says the only way to squash this threat is2:00 p.m.
isis threats prompting security increases here as the terrorists ramp up their pricey propaganda machine everywhere. they're producing flick, hollywood quality videos and pumping them out there to millions around the globe. reason why? gary says if we want to defeat isis once and for all, we need to cut off all their cash right now. >> brenda we've seen it time
and time again. terrorists countries, terrorist organizations, organized crime all have an achilles heel. it's the money. that's what they're really in existence for. yeah say they they're arguing to make a point, but the blood, the life blood of them to do all the things you talked about, the propaganda taking over five-star hotels all the things they steal is all getting down to the money. you cut that off, brenda it'll be just like al capone. he finally went to prison thank god, because of the money thing with the irs. that's the way to get to these organizations. that's what we need intelligence to do. to cut off the funding. they will wither die and go away. >> john is part of this because it's harder to do than just to say it is part of this putting sanctions on countries who are somehow giving the money? >> yes. that's a huge part of it. i agree with gary. i wouldn't take military completely off the table. it's not an either/or
proposition. but you have isis not funded like al qaeda and other terrorist organizations, from donors giving large amounts of money. it's like a business. north korea, years ago, we cut off their bank. at one point, the dictator couldn't even pay the main generals. we can put sanctions on any country that deals with isis in any way, and you will start to cut off the funding. you can't stop the hostage, because that's private enterprise and government is giving money. the oil shipments and oil cells, you can. it comes from a country. put sanctions on the countries. >> i should agree, we should try to sanction whoever it is the actors facilitating the transactions but it's complicated. when you have turkey, an ally of ours you can't put sanctions on turkey. who are the brokers? who are the people who are paying their bills? it's not happening with cash.
it's happening through banks x iraq's banking system. who is keeping them running? it's really like working those relationships to make sure we cut off their funding source. it's not going to happen through sanctions when you have allies doing this. >> lisa? >> the problem is, we don't have a president that has built up a lot of trust with some of the allies and coalition partners. the problem is outside of bombing oil facilities it's very difficult to try to cut down on their funding. the reality is isis is making a lot of their money from selling hostages to european countries, from selling oil, from taxing businesses and farmers within the territories they control. they also operate largely in cash. the problem is, they're operating outside of legitimate channels that the which he hasry can target and track. >> jonas? >> it's the same problem with al capone. the criminal organizations live off currency.
why do we still have currency. let's get together with the major countries and phase out currency. at the end of the day, the sanctions only screw up legitimate businesses. the krurntcurrency keeps the illegal stuff there. you can't stop it. doesn't matter how popular the president is aboard. they have billions of our currency in all of these countries. we have to make it worthless. move it through the banking system where you can track it seize it. the irs seizes banking accounts. they can't seize bags of cash. >> the government is making a good job of making it worthless right now. can i give john the last word quickly? >> this is an all cash business. if turkey is allowing a lot of this to come through, why not sanction them? force them to cut off isis
funding. charles is in for neil this week. >> this texas attacker made no secret online. why didn't authorities take him off streets? with a plan to make college free a private company sending taxpayers free. did the u.n. just invite saudi arabia where stoning is legal, to cast stones on us for what happened in baltimore?
just because i'm away from my desk doesn't mean i'm not working. comcast business understands that. their wifi isn't just fast near the router. it's fast in the break room. fast in the conference room. fast in tom's office. fast in other tom's office. fast in the foyer [pronounced foy-yer] or is it foyer [pronounced foy-yay]? fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business.
the u.n. human rights council is going to be putting america's police under a microscope on monday. guess which nation the u.n. has invited to lead the charge? saudi arabia. john's blasting the hypocrisy and wants to stop funding the u.n. now. >> absolutely. the u.n. is one of the most corrupt, inept industries in the history of our country. the reason the all for food program didn't work against sa sam -- saddam hussein was the u.n. i would move it down to haiti. haiti could use the economic boost. we could get rid of all the idiots in the state of new york by moving it there. >> would the clinton foundation take over? saudi arabia should not be in the u.n. they're violating human rights as much as they think the u.s.
is if not more. if you're in a glass house, you can't throw stones. what is that metaphor? the problem with the u.n. is it's burbureaucratic. we need them for peacekeeping troops. facile they relationships with other state departments around the world. they serve a need around the world. the problem is they are incredibly brew catureaucratic. we're dealing with countries that have a different view of human rights. >> we may a lot of money and now they're criticizing us? >> we don't pay a lot of money, brenda to the u.n. we pay 20% of the u.n.'s budget. 20% for crying out loud. plus they rack up the tabs in that part of new york like crazy. the amount of unpaid parking stuff there. $3 billion a year, brenda. i would counter from she said. it always sounds good the federal reserve, you have this
pie in the sky, the peacekeeping troops. then you get to the reality that john said. you have a corrupt organization that supposedly is charged with enforceing all these moral ethics. they're inept after it and causing us a foreign. i think we should send it to haiti and we can visit. >> do we have a reason to cut funding to the u.n.? >> no. first of all, every country with human rights violation wasn't allowed in the u.n. it would be sweden and that'd be it. us not paying now because they're pointing a finger at us is like the kid getting his blocks taken away because he didn't like how the game is going. we could use a little scrutiny globally occasionally. if you have an issue with the police state getting out of control, i welcome it. >> i have to get lisa in here. >> let's put it in perspective. we're talking about a country that stoned a woman that permits
violence against women. there's a little bit of a difference than what they're criticizing the united states for doing. the reality is the u.n. is an abject failure. they failed to maintain international peace, and we should absolutely cut off funding. >> all right. thanks guys. >> thank you, lisa for joining us. cashing in just over an hour from now. eric? >> hi brenda. our own juan williams taking on the woman behind the prophet muhammad contest. plus bill o'reilly says it's time for the fbi to investigate the clinton foundation. catch it at 11:30. up here first, after losing big in the ring is manny pacquiao about to lose big in court? find out how you can make money on this fight. it,
♪ when we were young we wanted to change the world. so we did. we took a generation that was built on hope... and turned it into a generation that changed lives. and this life that we've built? we're not done building it... security 1 lending is committed to providing valuable information to help you make financial decisions about funding your future. home equity conversion mortgages are fha insured and let you turn home equity into cash you can use to pursue the life you love. also known as reverse mortgages, these loans provide tax-free cash and eliminate monthly mortgage payments. so call and speak with a security one lending home equity conversion mortgage specialist. the call is free and so is the information kit security 1 lending will send you. we changed lives...
prediction? >> brenda google is everywhere. they might buy yelp getting into the delivery service area. i love the company, love the stock. it's up 15% by the end of the year. >> bull or bear? >> the tech stocks are too expensive. >> john? >> green mountain screwed up. the stock is down. i think it's up 15% in a year. >> bull or bear? >> didn't get it fixed. >> jonas, your prediction? >> brenda not since the lip singing scandal of 20 years ago
has the customers been in the purchases. you'll match free sports on espn. up 15%. >> if you want to see a real fight, it's up next. keep watching. long before that cartoon contest, this would-be killer was over twitter, leaving many to wonder why he wasn't already behind bars. welcome. the fbi says it knew about elton simpson and warned garland, texas, police about him. tweets against americans and hooking up with isis aren't enough to take the guys down right away what is? we're also joined by ben stein, and julie and martin. jerry, this is nuts. we have these guys. we know they're out there and know the